Exempt Employee Determination- Salary Threshold

The second increase to the annual salary threshold that determines if an employee is exempt from overtime becomes effective on January 1, 2024, and is set at $58,656. In addition to the salary threshold, an employee’s position must fall under the Executive, Administrative and Professional overtime exemption, as well as meeting the following tests.

1. be paid a salary, meaning that they are paid a predetermined and fixed amount that is not subject to reduction because of variations in the quality or quantity of work performed;
2. be paid at least a specified weekly salary level; and
3. primarily perform executive, administrative, or professional duties, as provided in the Department’s regulations.

Although cases are pending in Texas declaring the salary threshold unenforceable, no decisions have been made yet.  At this time, employers should begin to review the salaries and job duties of current exempt employees to prepare for the January change.